I thought this was noteworthy enough in its own right to break into a separate topic:

  Apple Files Major Multi-Level Flash Cell Patents

Could Apple be looking to start manufacturing its own flash memory, or at the very least obtaining patents so as to be able to cross-license them to chip foundries/partners such as Samsung/Toshiba/SanDisk in order to obtain even better prices on its own flash memory requirements?

Owning vital flash memory patents with widespread application to future needs of the computing and IT industries could well give Apple a strong negotiating edge with the chip foundries in both ensuring its own supply and also lowering costs.

Thoughts?

I’m not too keen on AAPL diversifying into flash memory manufacturing, the big players have the necessary infrastructure up and running

AAPL could very well license the tech to Samsung & co while having a preferential deal with them.

in any case, this is some intriguing news! It’ll be unnoticed on WS (why should they bother ) but this could bode well for the future
thanks for sharing this T!

Apple is unlikely to have its own foundry; few do that these days. However the gross margin on chip sales is largely shared out in IP licensing fees. For commodity products not protected by patents, margins are small, or even negative.

I haven’t studied in detail, but the patents seem to relate to the integration of NAND flash dies into systems.

While people have been saying that flash based “disk drives” will be a big market for Sandisk, Samsung etc. in the next 2 years, it hasn’t ever really seemed to me it will be more than a transitional upgrade market. If you’re not using a mechanical storage device, keeping the “drive” a separate physical component becomes a waste of money, space, power. (Notice also how Apple leaves out flash card sockets from all its products with little apparent complaint from consumers)

Therefore, I think patents like these will quickly become important for designing high volume products containing flash memory. With Apple holding them, this goes right back to the early days of Apple, and Apple’s approach to hardware/software. The elimination of hardware by ingenious hardware/software integration, e.g. the (Integrated) Woz Machine.

(Above is not thought through in any detail; just my instinctive reaction to recent news.)

I’m reminded of a favourite tidbit from the Feb ‘84 Byte Magazine interview of the original Macintosh 128K team:
Jobs: “I just thought I’d show this to you. This is the IBM (PC) video board; it’s only video, nothing else. It’s 69 integrated circuits, more chips than an entire Macintosh, and it basically does nothing. And it doesn’t even do that very well.” Tight systems integration for low cost high volume production is deep in the DNA of Apple. I’m pleased to see it alive and well in these patents.

SG, thought-provoking perspective and insight. Thanks.

As I’ve said before: When in doubt, buy IP.

Apple’s IP library is becoming enormous which provides a real and tangible “value added” to the shares. I also don’t see Apple choosing to manufacture its own memory. But I do see Apple moving to develop and patent for the company’s unique needs.